Why is following an unrelated diversification strategy especially advantageous in an emerging economy?
A) It allows the conglomerate to overcome institutional weaknesses in emerging economies.
B) It allows the conglomerate to form a monopoly in emerging economies.
C) It allows the conglomerate to use well-defined legal systems in emerging economies.
D) It allows the conglomerate to take advantage of strong capital markets in emerging economies.

Question

Quizplus · Accepted Answer

An unrelated diversification strategy helps firms gain and sustain competitive advantage because it allows the conglomerate to overcome institutional weaknesses in emerging economies, such as a lack of capital markets and well-defined legal systems and property rights.

Why Is Following an Unrelated Diversification Strategy Especially Advantageous in an Emerging